BIP-360 (Pay-to-Merkle-Root / P2MR)
What Is BIP-360?
BIP-360 is a draft proposal for a new Bitcoin output type. Its primary purpose is to protect against a specific quantum computing risk: the long-exposure attack, where a public key sits visible on the blockchain for an extended period, giving a future quantum computer time to derive the private key from it.
Under most current Bitcoin address types, your public key is eventually revealed on-chain when you spend funds. BIP-360 proposes to reduce this exposure by removing the key-path spend option for this output type. Instead of committing to a public key, funds are sent to a Merkle root, a cryptographic commitment to a script tree. The public key is not committed to on-chain in the output, and typical spends do not broadcast the public key on-chain.
Think of it like putting your spending rules in a sealed envelope. The seal is visible on the blockchain, but the rules inside stay hidden until you spend.
How Does BIP-360 Work?
Instead of sending funds to a public key, funds are sent to a commitment to a script tree, represented as a Merkle root. Because there is no key-path spend, the public key is not typically broadcast to the network. The full script is only revealed at the moment of spending, which keeps the key off-chain for as long as the funds remain unspent.
Security and Quantum Readiness
BIP-360 addresses long-exposure quantum attacks, where keys are visible on-chain for extended periods. It does not fully protect against short-exposure attacks, where a key is briefly visible while a transaction waits to be confirmed. Full protection against short-exposure attacks may require post-quantum signatures in the future.
While BIP-360 is a step toward quantum safety, it is not a complete quantum-proof solution. It works best when combined with good practices such as avoiding address reuse and using a hardware signer to verify address and transaction details before signing. Wallets will handle the complex script-tree construction in the background, but confirming the address and transaction details on your device before authorizing remains essential.